Carbon reduction schemes and the energy sector: A bottom up approach?

Abstract

Any unilateral carbon pollution reduction scheme will have significant far-reaching effects on the domestic energy sector. The problem stems from the fact that the Kyoto Protocol and the subsequent failure of Copenhagen have not produced an international convention which levels the playing field for the production of energy. A cost increase in the production of energy flows through the whole economy and considering the current painful recovery post-financial crisis, careful consideration must be given to the establishment of a carbon reduction scheme.